|
on Microeconomic European Issues |
| By: | Nathalie Greenan (CEE - Centre d'études de l'emploi - Ministère de l'Enseignement supérieur et Recherche - Ministère du Travail, de l'Emploi et de la Santé, TEPP - Travail, Emploi et Politiques Publiques - Université Paris EST); Ekaterina Kalugina (CEE - Centre d'études de l'emploi - Ministère de l'Enseignement supérieur et Recherche - Ministère du Travail, de l'Emploi et de la Santé, TEPP - Travail, Emploi et Politiques Publiques - Université Paris EST, EPEE - Centre d'Etudes des Politiques Economiques - Université d'Evry-Val d'Essonne); Emmanuelle Walkowiak (CEE - Centre d'études de l'emploi - Ministère de l'Enseignement supérieur et Recherche - Ministère du Travail, de l'Emploi et de la Santé, TEPP - Travail, Emploi et Politiques Publiques - Université Paris EST, ERUDITE - Equipe de Recherche sur l'Utilisation des Données Individuelles Temporelles en Economie - Université Paris XII - Paris Est Créteil Val-de-Marne : EA437 - Université Paris Est Marne-la-Vallée) |
| Abstract: | This paper provides a mapping of quality of work and measures its evolution between 1995 and 2005 by using European Working Conditions Surveys. With a multilevel modelling, we assess the sensitivity of observed trends to "composition effects" and "country effects". Results suggest a decreasing trend in the quality of work: working conditions have deteriorated, while work has become more intense and less complex. In Germany and Italy all indicators have worsened while other European countries have more mixed results. |
| Keywords: | quality of work, quality of working life, working conditions, work intensity, work complexity, European comparison, multilevel modelling |
| Date: | 2012–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00682107&r=eur |
| By: | Kimmo Ollikka; Piia Aatola; Markku Ollikainen |
| Abstract: | We study the informational efficiency of the European Emissions Trading Scheme, EU ETS market by simulating the trading in this emerging market. If the market is efficient, profitable trading should only exist locally in time. We adopt the Timmermann and Granger (2004) definition of efficiency and for the first time in the literature run a large set of econometric, technical analysis and combined models to forecast the emissions allowance price changes. These forecasts are then used as trading signals in the trading simulation. We find that the combined models outperform the other models in forecasting ability. Trading simulation based on models combining time series and technical analysis trading rules shows that there have been possibilities for profitable trading in the EU ETS market during the study period of 2008?2010. This suggests that the EU ETS market shows periods with no informational efficiency. |
| Keywords: | European Union emissions trading, informational efficiency, econometric analysis |
| JEL: | Q52 Q53 |
| Date: | 2012–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:28&r=eur |
| By: | Caroline Berchet (IRDES institut for research and information in health economics); Nicolas Sirven (IRDES institut for research and information in health economics) |
| Abstract: | This paper provides new empirical evidence on the relationship between migration and social integration. It explores the hypothesis that migrants essentially differ from non-migrants with regard to the length of residence in the country – which is a proxy of migrants’ social distance to natives. The determinants of social participation and interpersonal trust are examined at both the individual and institutional level. Using SHARE data and macroeconomic series, we first analyse the influence of immigrant length of stay in the host country on social integration indicators. We then examine the role institutional characteristics play on cross-country differences in speed of social integration (i.e. immigrants’ propensity to social participation according to their length of stay in the host country). As expected, the immigrant population presents a lower likelihood than the native population to get involved in social activities and to trust other people. Nevertheless, the more immigrants have spent time in the host country, the more they take part in social activities. The analysis also reveals significant cross-country differences in immigrants’ speed of social integration. Macroeconomic series like the GINI coefficient of income inequality and the Corruption perceived index could explain these differences. From a public policy perspective, our results suggest that immigrants’ social integration is more rapidly achieved in “fair” countries – i.e. those with a more favourable social environment – where the levels of income inequality and perceived corruption are lower. |
| Keywords: | Social capital, Ageing, Income inequality, Multilevel models. |
| JEL: | F22 O52 C31 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:irh:wpaper:dt46&r=eur |
| By: | Cludius, Johanna; Beznoska, Martin; Steiner, Viktor |
| Abstract: | We calculate the expected distributional effects of the European Emissions Trading System combining industry and household-level data. By combining data on direct CO2 emissions by production sector from the German Environmental Account with the German Input-Output Accounts, we calculate the CO2 intensity of each sector covered by the EU ETS. We focus on the impact of price increases in the electricity sector, both directly in the form of higher electricity bills for consumers and indirectly through products that use electricity as an input to production. Distributional effects of price increases are analyzed on the basis of the German Income and Expenditure Survey for the year 2008 data and updated to 2013. We confirm the ex-ante expected regressive effect, which is, however, both rather small in magnitude and can be offset and even more than offset by revenue recycling, in particular the reduction of social security contributions on labour income. -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:20126&r=eur |
| By: | Maarten GOOS; Alan MANNING; Anna SALOMONS |
| Abstract: | This paper develops a simple and empirically tractable model of labor demand to explain recent changes in the occupational structure of employment as a result of technology, offshoring and institutions. This framework takes account not just of direct effects but indirect effects through induced shifts in demand for different products. Using data from 16 European countries, we find that the routinization hypothesis of Autor, Levy and Murnane (2003) is the most important factor behind the observed shifts in employment but that offshoring does play a role. We also find that shifts in product demand are acting to attenuate the impacts of recent technological progress and offshoring and that changes in wage-setting institutions play little role in explaining job polarization in Europe. |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces11.34&r=eur |
| By: | Javier OLIVERA ANGULO |
| Abstract: | In the extensively studied equal division puzzle, one finds very large shares of equal bequests and unequal inter-vivos transfers given to adult children. However, such puzzle is less evident in Europe as we find a higher prevalence of parents giving equal inter-vivos transfers. We argue that altruistic parents are also concerned with norms of equal division. Thus, parents do not fully offset child income inequality. The parents start to give larger transfers to poorer children if the child income inequality becomes unbearable from the parent’s view. We find econometric evidence for this behaviour using microeconomic data of 12 European countries from the two waves of the Survey of Health, Aging, and Retirement in Europe (SHARE). |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces11.20&r=eur |
| By: | Mario Pianta (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Matteo Lucchese (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo") |
| Abstract: | This article explores the way economic cycles influence the relationship between innovation and employment in manufacturing industries. We investigate whether the ups and downs of cycles alter the possibility of exploiting technological opportunities and affecting patterns of job creation. A model that explains industries’ employment change by combining technology and demand is proposed; the empirical test is based on data on 21 manufacturing sectors from 1995 to 2007 for Germany, France, Italy, the UK, the Netherlands and Spain. Results show that, in upswings, employment change is affected by new products, exports and wage growth, while during downswings new processes contribute to restructuring and job losses. |
| Keywords: | Innovation, Cycles, Employment, Demand. |
| JEL: | L6 J20 O30 E32 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:12_03&r=eur |
| By: | F. Tedeschi; A. Reggiani; P. Nijkamp |
| Abstract: | This paper aims to investigate the relationship between commuting and spatial labour market developments in the framework of sustainability issues. To do so, we propose, first, an exploratory investigation of the effects of inbound commuter flows on employment in regional labour markets in Germany. Next, we address sustainability issues as a common umbrella for the relationship ‘economy-transportation’. In this context, we show that the German production system is faced with negative environmental externalities, which are clearly associated with a specific transport mode, viz. the private car. Negative environmental externalities as a result of modal choices in Germany are confirmed by data from EU-15 countries. Public transport, in particular the train, appears to be more environmentally-benign. Our results bring to light that, on average, commuter flows have a positive and robust effect on employment in the receiving German labour market districts, while, for commuting flows, public transport, especially the train, is a more environmentally-benign mode of transport, compared with the car, in reducing greenhouse gas emissions and energy consumption. In the light of possible policy strategies, the paper argues that sustainability may lead to positive economic effects; in particular, the improvement of the public transport system, which can provide more opportunities for sustainable commuting patterns, may lead to favourable employment perspectives for the local or regional labour force. |
| JEL: | R41 R23 J61 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp819&r=eur |
| By: | Paetzold, Jörg (University of Salzburg) |
| Abstract: | This paper investigates whether there is a convergence in welfare state policies among the old EU member states. To identify such trends, we rely on pension and unemployment net replacement rates as well as on public social expenditures. Empirically, we use a sample of 14 economies (EU-15 excl. Lux.) between 1980 and 2005. The empirical findings reveal a presence of a convergence process, driven by strong catch-up of social protection levels in the Southern member states. Furthermore, convergence in replacement rates is substantially less pronounced than using spending data. |
| Keywords: | social protection; convergence; pension & unemployment replacement rates; Europeanization; welfare state |
| JEL: | I32 I38 J68 |
| Date: | 2012–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:sbgwpe:2012_004&r=eur |
| By: | Mångs, Andreas (Centre for Labour Market Policy Research (CAFO)) |
| Abstract: | In this study we examine time allocation between market work and domestic activities and the division of labour for a sample of gainfully employed women, focusing particularly on female self employed. Of primary interest for the present study is whether having resident children, and small children in particular, has an impact on time allocated to market work, domestic activities and the division of labour that can be differentiated between self employed and wage-employed. We use a unique data set that combines survey data with register data covering 10 000 individuals. In this study we use a subsample consisting of 2 155 married or cohabiting women of which 925 are self-employed. Our results suggest that Swedish self-employed women spend significantly more time on market work compared to female wage-employed. About 30 percent of all married/cohabiting self-employed women work on average 45 hours or more per week, the corresponding share for wage-employed being around 7 percent. The fact that this share is high among married or cohabiting self-employed women shows that the assumed gain in flexibility through self-employment is not due to a reduction of working hours. Rather, the flexibility offered by self employment manifests itself in an adaptation of when and presumably also where to work. However, it appears that female self-employed reduce the time spent on market work relatively more than wage-employed women do when they have resident small children. But on average, female self-employed with small children still devote more time to market work than corresponding wage-employed women. Our estimations also suggest that for mothers the number of children affects the time devoted to domestic and care activities differently according to employment status: One more resident child contributes to a significantly smaller increase in the time devoted to housework and care activities for married or cohabiting self-employed women compared to corresponding wage-employed women. We find also that, ceteris paribus, married/cohabitant female self employed have a higher tendency to report a more equal division of domestic tasks than married/cohabitant female wage-employed. |
| Keywords: | Self-employment; Time allocation; Gender |
| JEL: | J16 J22 J24 |
| Date: | 2011–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vxcafo:2011_004&r=eur |
| By: | Combes, Pierre-Philippe; Duranton, Gilles; Gobillon, Laurent; Roux, Sébastien |
| Abstract: | This paper provides descriptive evidence about the distribution of wages and skills in denser and less dense employment areas in France. We confirm that on average, workers in denser areas are more skilled. There is also strong overrepresentation of workers with particularly high and low skills in denser areas. These features are consistent with patterns of migration including negative selection of migrants to less dense areas and positive selection towards denser areas. Nonetheless migration, even in the longrun, accounts for little of the skill differences between denser and less dense areas. Finally, we find marked differences across age groups and some suggestions that much of the skill differences across areas can be explained by differences between occupational groups rather than within. |
| Keywords: | skill distribution; sorting; wage distribution |
| JEL: | J31 J61 R12 R23 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8920&r=eur |
| By: | Duszczyk, Maciej (Warsaw University); Góra, Marek (Warsaw School of Economics) |
| Abstract: | Poland has traditionally been treated as an emigration country. Since recently Poland has been changing into an emigration-immigration country. The latter, namely immigration, was boosted by the European Union membership and by stable and strong growth of the country. In the last years, immigrants have started to play an important role in the Polish labour market, which creates an additional challenge for the institutional structure. At the same time the institutional framework for receiving immigrants, especially integration policy, has not been fully developed yet. It is addressed only to refugees and is provided mostly by NGOs who run various integration programmes (most often focused on providing language courses). Public expenditure on integration policies has recently increased. However, data on immigrants, integration in immigration policy and also its analysis are still scarce. In this paper we try to present and discuss the available information on immigration to Poland and instruments of integration policy in the context of the existing institutional framework. We propose also recommendations for the pre-integration and integration policy in Poland. The goal of the paper is modest since it is hardly possible to apply more sophisticated methods given the limited availability of information. |
| Keywords: | immigrants, integration policy, active inclusion |
| JEL: | J61 J68 Y80 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6427&r=eur |
| By: | Lechmann, Daniel S. J. (University of Erlangen-Nuremberg); Schnabel, Claus (University of Erlangen-Nuremberg) |
| Abstract: | Using a large data set for Germany, we show that both the raw and the unexplained gender earnings gap are higher in self-employment than in paid employment. Applying an Oaxaca-Blinder decomposition, more than a quarter of the difference in monthly self-employment earnings can be traced back to women working fewer hours than men. In contrast variables like family background, working time flexibility and career aspirations do not seem to contribute much to the gender earnings gap, suggesting that self-employed women do not earn less because they are seeking work-family balance rather than profits. Differences in human capital endowments account for another 13 percent of the gap but segregation does not contribute to the gender earnings gap in a robust way. |
| Keywords: | earnings differential, entrepreneurship, gender pay gap, Germany, self-employed, self-employment |
| JEL: | J31 J71 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6435&r=eur |
| By: | Nonneman W. |
| Abstract: | 15% of the total Belgian school population has an immigrant background. PISA 2009 results show that Belgium – despite being in the top 15 performers of all OECD participants - has one of the highest performance differences in Europe between children with and without an immigrant background. Furthermore, second generation immigrant children are doing worse than first generation immigrant children. This paper explores the determinants of school achievement, school failure and sorting of children with an immigrant background, using a new large survey of Flemish school children. The theoretical framework is based on the education production function literature and specific empirical socioeconomic literature on immigrant children, suggesting that personal factors, family conditions, school, peers, neighborhood, type of acculturation and history of migration matter to explain school achievement and failure. The empirical results show that unexplained differences between students with a Flemish, Turkish and Moroccan background remain after controlling for personal and background influences. A key finding is the large impact of innate ability and individual effort for all groups. |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2012008&r=eur |
| By: | Sarantis Lolos (Panteion University); Evangelia Papapetrou (Bank of Greece and University of Athens) |
| Abstract: | This paper brings new evidence on the relationship between housing credit and female labour participation decisions by investigating the possible interdependence between the two variables in the case of Greece. This relationship is analysed through the estimation of a probit model with endogenous regressors using household data of the Income and Living Conditions (EU-SILC) survey for 2008. The empirical results show that mortgage and female labour participation decisions are interrelated. In a broader perspective, the evidence provided in our analysis supports the existence of a finance (housing credit) and real economy activity (female labour supply) nexus. |
| Keywords: | Mortgage market; female labour market participation; endogeneity |
| JEL: | J2 D91 J21 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:bog:wpaper:141&r=eur |
| By: | Stephan Humpert (Institute of Economics, Leuphana University Lueneburg, Germany) |
| Abstract: | There is only a few literature on age specific occupational segregation. In this descriptive paper, I focus on job opportunities for newly hired older male and female workers. It is an enriched replication study of Hutchens (ILRR,1988), who showed that firms employ older workers, but hire them less. I use a rich dataset for West Germany with information for almost thirty years, the regional file of the IAB Employment Sample (IABS-R04). By drawing segregation curves and calculating different measures, such as Dissimilarity Index and Hutchens Square Root Segregation Index, I find clear evidence that age related segregation exists. While newly hired workers in the age groups of 18 to 34 and 35 to 54 are quiet similar distributed in terms of the indices, the oldest age group of 55 years and older, and especially older women, are more segregated. Differences for older male and female workers over time, may be explained by changes in labor and retirement policies. |
| Keywords: | Labor Demand, Age Segregation, Older Workers, Gender |
| JEL: | J23 J24 J21 J14 J16 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:235&r=eur |
| By: | Pieter VANLEENHOVE |
| Abstract: | In line with the Earned Income Tax Credit in the United States and the Working Family Tax Credit in the United Kingdom, the Flemish government implemented in 2007 a similar in-work tax credit in order to increase the employment rate and to make working financially more attractive. This paper investigates how total labour supply changes and checks if the cost reductions due to these behavioural reactions are large enough to defend such expensive policies. It appears that married women alter their labour supply decision the most. However, due to the small tax credit, total labour supply effects are of minor size and hardly offset the large costs. Only a more generous tax credit leads to a higher activation of unemployed, however the budgetary cost is huge |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces11.22&r=eur |
| By: | Mussida, Chiara (Università Cattolica del Sacro Cuore); Picchio, Matteo (Ghent University) |
| Abstract: | This paper studies the gender wage gap by educational attainment in Italy using the 1994–2001 ECHP data. We estimate wage distributions in the presence of covariates and sample selection separately for highly and low educated men and women. Then, we decompose the gender wage gap across all the wage distribution and isolate the part due to gender differences in the remunerations of the similar characteristics. We find that women are penalized especially if low educated. When we control for sample selection induced by unobservables, the penalties for low educated women become even larger, above all at the bottom of the wage distribution. |
| Keywords: | gender wage gap, education, counterfactual distributions, decompositions, hazard function |
| JEL: | C21 C41 J16 J31 J71 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6428&r=eur |
| By: | Fabbri, Francesca (University of East Anglia); Marin, Dalia (University of Munich) |
| Abstract: | The compensation of executive board members in Germany has become a highly controversial topic since Vodafone’s hostile takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on unique panel data evidence of the 500 largest firms in Germany in the period 1977-2009 we test two prominent hypotheses in the literature on executive pay: the manager power hypothesis and the efficient pay hypothesis. We find support for the manager power hypothesis for Germany as executives tend to be rewarded when the sector is doing well rather than the firm they work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has contributed to the rise in executive pay in Germany. Lastly, we show that CEOs in the banking sector are provided with incentives for performance and that the great recession of 2009 acted as a disciplining devise on CEO pay in Germany. |
| Keywords: | executive compensation, corporate governance |
| JEL: | F23 J3 M12 M52 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6420&r=eur |
| By: | Jessie Bakens (VU University Amsterdam); Peter Mulder (VU University Amsterdam); Peter Nijkamp (VU University Amsterdam) |
| Abstract: | This paper identifies the role of cultural diversity in explaining spatial disparities in wages and housing prices across Dutch cities, using unique individual panel data of home owners. We distinguish between the effects of interactions-based productivity, consumption amenities and sorting of heterogeneous home owners while controlling for interactions between the labor and housing market. We find that an increase in the cultural diversity of the population positively impacts equilibrium wages and housing prices, particularly in the largest and most densely populated cities. This result is largely driven by spatial sorting of individuals in both the labor and housing market. After controlling for home owner heterogeneity we find that increasing cultural diversity no longer impacts local labor markets and negatively impacts local housing markets. The latter result is likely to be driven by a negative causal effect of increased cultural diversity on neighb orhood quality that outweighs a positive effect of increased cultural diversity in consumption goods. |
| Keywords: | cultural diversity; immigrants; local amenities; sorting; housing prices; productivity |
| JEL: | J31 R21 R23 R31 |
| Date: | 2012–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20120024&r=eur |